18 HORIZONS
t the National Retail Federation (NRF) Annual Conference and Expo in New York just over a month ago, Microsoft shared details of its retail strategy, which focuses on transforming one-off applications, devices and databases into an end-to-end solution. It said that its overarching goal is to help retailers respond to changes in the market, drive greater effi ciencies in their processes and provide customers with a shopping experience that is personal, seamless and differentiates the retailer from its competitors. A critical component of Microsoft’s
retail strategy involves the use of intelligent
MICROSOFT DELIVERS I A
The software giant looks ahead over the next year with renewed focus on retail as a key industry vertical, meeting demand for integrated and intelligent IT systems
systems that enable the fl ow of data across a company’s infrastructure, from specialised devices where it’s generated by employees and customers, to back-end systems and services where it’s translated into strategic insight and business decisions.
Connected devices lead to customer insight Part of what makes these intelligent systems possible is a new generation of barcode scanners, point-of-sale (PoS) systems, kiosks and other devices that are powered by Microsoft Windows Embedded. Together, the company said they generate a richer level of data about nearly every facet of
a retailer’s business. And once it has been analysed, this data can provide a wealth of insight ranging from more accurate sales forecasts to more effective pricing models and a better understanding of customer behaviour.
For companies seeking a competitive
advantage, such data is becoming the new gold standard. Based on 2011 IDC semiconductor market data, Microsoft estimates that, by 2015, demand for intelligent systems within the retail industry will grow from its current level of around 15 million units to more than 28 million units. Retailers such as The Co-operative Group in the UK have already started implementing intelligent systems, and Microsoft is seeing this same trend take hold in the healthcare and manufacturing industries as well. To help companies get the greatest value, its Windows Embedded division released a white paper that outlines the essential characteristics of an intelligent system. These are: security, identity, connectivity, manageability, user experience and analytics. And over the past several months, Microsoft has released several products that help deliver on some of these aspects of an intelligent system.
Taking a natural approach to intelligent systems The most recent example, and perhaps most noteworthy, is Kinect for Windows, which was the focus of some attention at the Consumer Electronics Show (CES) in Las Vegas this January. Microsoft announced the commercial availability of the Kinect for Windows software development kit (SDK), and offered a conceptual example of how Kinect for Windows and Windows Embedded can work together to reinvent the retail experience. Microsoft worked with Razorfi sh to develop a proof-of-concept scenario much like the one pictured below. This attention refl ects the fact that
people have become more accustomed to a user experience that incorporates touch, voice and gesture recognition. With its
RETAIL TECHNOLOGY JANUARY/FEBRUARY 2012
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